May 29, 2004
GREED HAS NO POLITICS:
US and the EU: an economic love affair (Richard Carter, 5/28/04, EUObserver)
Despite political tensions and periodic trade disputes, the economic ties between the EU and the US are closer and deeper than ever, argues a new report presented today (28 May) at the Centre for European Policy Studies in Brussels. [...]Posted by Orrin Judd at May 29, 2004 7:28 AMThe report says: "even though US-German relations ebbed to one of their lowest levels since World War II, American firms sank $7 billion in Germany in 2003, a sharp reversal from 2002, when US firms pulled some $5 billion out of Germany".
US investment flows to France also jumped by ten percent last year despite a general decline in Franco-US relations.
And there was more French investment into the state of Texas than the combined total of US investment into China and Asia.
Love affair? Please. The shift in investment is mainly due to the relative drop in value of the US dollar against the Euro, due mainly to investor arbitrage of the gap in interest rates between the Fed (low) and the EU central bank (high).
Posted by: Gideon at May 29, 2004 6:35 PMHas no one read Asimov's Foundation books?
Posted by: David Cohen at May 29, 2004 9:56 PM